TEHRAN – Arg Diesel Khodro Company intends to manufacture Ikarus city buses in Iran, ISNA reported on Tuesday.

Assembly line installation is already underway and the company, a subsidiary of Kerman Khodro Group, is expected to furnish the Interior Ministry with the number of buses required to overhaul city transportation nationwide.

Article 13 of the fiscal budget law (Iranian year started March 21, 2006) calls for stock of 6,500 new buses of which 2,150 are purchased. Iran Khodro Diesel and Ikarus are so far credited with 1,500 and 650 respectively.

Ikarus buses, made in Hungary, hold a long history in Iran’s transportation sector.